Diamond & Specialty Minerals Summary for July 17, 2017
2017-07-17 21:16 ET - Market Summary
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WillP, some critical information missing is the valuation of Diavik in this DDC deal. Does Rio Tinto not have a right of first refusal on DDCs forty percent? I haveyet to read thatthey have waived this right. Rio has regularly stated their intention to stay in thediamond business, and there are precious few other opportunities to acquire production post argyle and diavik. My feeling is that Washinton is the seventy million dollar vehicleto drive rio and debeers to the table now that a lowball is in. Rio is no longer in a preditory position with respect to diavik, and perhaps a CCP DeBeers partnership makes sense. Coupled with an unusually LONG closing date, there is lots of room for those majors to step up. I would rather keep my dividend than vend this off for a handful of cash from someone else who is just as likely to sell these assets to the majors themselves, down the road.
Posted by Borson at 2017-07-17 22:53
Borson:
You're right; I forgot about that. I'm all but certain that they do have a right of first refusal on a sale -- but what qualifies as a sale?
Dominion isn't selling Diavik, it's being acquired.
A gaggle of lawyers enter stage left?
I think it's a poor deal.
Cheers,
Will
Posted by Will Purcell at 2017-07-18 00:32
I think it isjust the kickoff in this game. The real players are RTP and DBs, and the table is set.
Posted by Borson at 2017-07-18 09:55
Btw, 'acquired' is sold. Change of ownership of the diavik asset is a sale. I currently own part of diavik, this deal would effect a sale of those assets to an entity other than my partner, who has a right of first refusal to my share.......
Posted by Borson at 2017-07-18 10:08
Time will tell, but given all the takeovers over the years, I don't recall any co-venturer on any project claiming a right of first refusal.
I'll be watching, though.
Cheers,
Will
Posted by Will Purcell at 2017-07-18 10:41
what about Fox Deep?
.rest assured...just a minor bit of ore with no apparent value,
Nothing to see there.
.right?
Posted by Borson at 2017-07-18 20:35
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